Obama's Next Big Bank Bailout

The Washington Times ^ | Aug. 27, 2010 | Rebel A. Cole

[rebel_yell2]

With the ink of President Obama's signature on the Barney Frank-Chris Dodd financial reform bill barely dry, the next bank bailout already has begun. How can that be, you might ask? Weren't we promised that this "landmark" legislation would end bank bailouts? Weren't we promised that this legislation ushered in a new era of transparency on Wall Street? Could it be that the politicians lied to us? Say it ain't so - but it is. If this brings to mind the backdoor bailout of Wall Street banks by AIG, it should. At just these three big banks, the taxpayers are on the hook for almost $60 billion in bailout money. This is yet another way to funnel our taxpayer dollars from Main Street into the banks on Wall Street. So the next time you hear Mr. Obama, Sen. Dodd or Rep. Frank tell us how they have "ended bank bailouts," remember that old comment from Yogi Berra, "This is like deja vu all over again." Only this time, the conduit is not AIG, it's the FHA.

[rebel_yell2]

Looks like the next big bank bailout is already underway. BofA, Citi, JPM and Wells are reaching into your pocketbooks yet again.

[antceecee]

Sons of bitches.....

[Hildy]

The party's over
It's time to call it a day
They've burst your pretty balloon
And taken the moon away
It's time to wind up the masquerade
Just make your mind up the piper must be paid

The party's over
The candles flicker and dim
You danced and dreamed through the night
It seemed to be right just being with him
Now you must wake up, all dreams must end
Take off your makeup, the party's over
It's all over, my friend

The party's over

It's time to call it a day

Now you must wake up, all dreams must end
Take off your makeup, the party's over
It's all over, my friend

It's all over, my friend

[antceecee]

Never was my party... my party is just beginning....

[Hildy]

I am talking about the big party this Country was in the last two decades...

[Beowulf9]

The Cloward-Piven strategy?

[screaminsunshine]

Yep. The Dow has to be held at 10k no matter what. To keep the Ponzi alive.

[timetostand]

I’ve have news for these asshats “I’m not payin!” Gone Galt

[snowsislander]

This is just the FHA insurance actually kicking in on the FHA loans that are not being paid.

It's not a big surprise or a new bailout. These are just FDR's chickens coming home to roost --- the FHA is just another part of FDR's disastrous "New Deal".

[rebel_yell2]

It IS a new bailout when we taxpayers have to pump tens if not a hundred billion or more dollars into the FHA. Just like Fannie and Freddie did up until they were put into conservatorship, the FHA insists that it will not need a taxpayer bailout. My guess is that the FHA will require in excess of $100 billion in taxpayer money to make good on the loan guarantees it has made on what are essentially subprime mortgages. Did we learn nothing from 2008?